US says Abitibi, Bowater must divest mill to merge
Oct 23, 2007. "Without a divestiture, the combined company could have strategically closed capacity and raised prices," said Deborah Garza, deputy assistant attorney general, said in a statement. "This divestiture will ensure that newsprint consumers continue to enjoy the benefits of competition."
Oct 23, 2007. /Lesprom Network/. Abitibi-Consolidated Inc and Bowater Inc agreed to sell a newsprint mill in Arizona in order to get U.S. federal approval to merge, Reuters reported.
The U.S. Department of Justice's antitrust division said it filed a proposed consent decree in federal court that would allow the deal if the divestiture of the Abitibi's newsprint mill in Snowflake, Arizona takes place.
"Without a divestiture, the combined company could have strategically closed capacity and raised prices," said Deborah Garza, deputy assistant attorney general, said in a statement. "This divestiture will ensure that newsprint consumers continue to enjoy the benefits of competition."